India: State Oil Companies Continue Losing Money From Fuel
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Thursday, 12 January 2012 |
The state-run oil firms in India have reported a combined revenue loss of Rs 33920 crore ($6.46bn) in the quarter to December 2010 as the cost of selling subsidised fuel continues to mount, according to Moneycontrol Bureau. Bharat Petroleum, Hindustan Petroleum and Indian Oil Corporation (IOC) are losing money from purchasing crude from international markets in dollars and selling diesel, kerosene and liquefied petroleum gas (LPG) at government-controlled prices.
Speaking to reporters, IOC's Director of Finance, PK Goyal (pictured), said that the firm had suffered the largest 'under-recovery' from selling below market prices. According to the Government's Petroleum Planning and Analysis unit, companies are currently suffering an under-recovery of Rs. 388 crore a day from selling diesel, kerosene and LPG. Under-recoveries between April and September totalled Rs. 64,900 crore. At present, the Government subsidises a third of under-recoveries that arise from price controls.
PetrolWorld 12012012
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